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Maxim manutactures a hamster food product called Green Health, Maxim currently has 10,000 bags of Green Health on hand. The variable production costs per bag

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Maxim manutactures a hamster food product called Green Health, Maxim currently has 10,000 bags of Green Health on hand. The variable production costs per bag are $2.70 and total fixed costs are $10,000. The hamster food can be sold as it is for $9.95 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,900 cost. The additional processing will yield 10,000 bags of Premium Green and 2.00 bags of Green Deluxe, which can be sold for $8.95 and $6.95 per bag, respectively. The net advantage incremental income of processing Green Health further into Premium Green and Green Deluxe would be Multiple Choice $116.605 $113,705 $1210 $14.205

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